Should I Invest Money In My House Before I Sell It?
If you’re in the market to sell, you are probably looking at your home through different eyes. You’re probably wondering how you can get the best price, and if investing in a new bathroom sink, or a new paint job will help increase that price. The truth is, is that every home is different, and some owners may find it worthwhile to make some improvements, while others will not see any benefit.
Should you spend money to fix your home before you sell it? The answer to this question depends on a few different factors: how good of condition your property is in now, what your budget is, how quickly you need to sell, and the market.
There are many different ways to improve your home without spending a lot of money. Additionally, some improvements will net a higher price. But it should be known that it would be inaccurate to say that fixer-uppers always sell for less. Additionally, you can’t always guarantee that improvements will help sell your home and recoup your investment.
If your home has a few needs, like repainting the kitchen, or fixing a broken sink faucet, it’s probably worth it to make these changes. You’ll find that if you spruce the place up a bit: fix squeaky hinges, paint over scratches, your home will be more attractive to the buyer.
If your home has a lot of work that needs to be done, say the outside hasn’t been painted in 25 years, or you want to replace the kitchen counters with granite, you probably won’t recoup your costs.
How quickly you need to sell
If selling your home fast is a necessity, you probably won’t want to invest in any upkeep. Renovations take time, and are known to have problems, specifically not being done in time.
Doing larger projects like painting your bedroom, or redoing your kitchen cabinets will only delay the sale of your home.
The current market should have a role in determining how your home should look. Current trends in your area will help determine the standard your home should be in. If every other home has features your home does not, it may be worth the renovation.
Should you buy a fixer upper?
Whether you’ve been buying fixer-uppers for years, or you’re a total newbie, deciding on whether or not purchase a fixer-upper depends on the market. Let’s do the math.
Add up the costs to renovate the house and property based on a thorough look at the home’s condition. Always try to round up, as well as include labor performed by you, and other people.
Take that number, and subtract that from the home’s estimated value after the improvements are made. You can draw from real estate prices near your home.
From that number, subtract up to 10 percent to account for unforeseen problems as well as inflation.
What you’re left with should be what you offer the current homeowners. If they don’t accept the deal, it’s easy: don’t buy the home.
If you still can’t decide on whether or not to make improvements to your home, contact us, we’ll be able to help you decide if the investment will be worth it.